- This topic has 1 reply, 2 voices, and was last updated 1 year ago by .
Viewing 2 posts - 1 through 2 (of 2 total)
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.
PQ Awards Nominations
Please help us to win one of the PQ Magazine awards and send in the voting form >>
You can nominate us in any or all of the following categories: Online College of the Year, Study Resource of the Year, Private Sector Lecturer of the Year, and Accountancy Personality of the Year.
Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>
Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AA Exams › ASSERTIONS
Hi,
if an invoice/payments relates to the expenses in the period just ended it must be accrued as at the year end. question,what is the review of the invoices received or payment made shortly after the year end be testing? completeness of the accruals and/or the existence of liability or vice versa.
Completeness of the accrual (which is the liability). It must be completeness because the direction of testing is from sources of evidence [that there is a liability] – the purchase invoices and the post y/e payments – to what is recorded in the financial statements (the accrual).
For existence, the direction of testing is always from what is recorded (the accrual) to the source.
As I happen to have explained in a recent post https://opentuition.com/topic/audit-risk-67 – the risk that liabilities are incomplete (understated) is a greater risk than that they are overstated.